Canadian hotel prices increase ahead of global average

Hotel prices paid in Canada rose by five per cent in 2014, surpassing the global average of three per cent, according to the latest Hotel Price Index

The average price paid by Canadians for a hotel room domestically rose by five per cent during 2014, compared with 2013, according to the latest™ Hotel Price Index™ (HPI™). This increase topped the global average of a three per cent rise in hotel prices paid as the global economic recovery gathered momentum and consumers became more confident in travel spending. Hotel prices have now experienced five years of steady price increases since they plummeted during the financial collapse of 2008/9.

The global HPI stood at 113 at the end of 2014, 13 points higher than at its launch in 2004 and on par with its 2008 level but still four points lower than its peak at 117 in 2007.

Johan Svanstrom, President of the brand, said: “Although the Index rose again last year, it is still way behind its peak of seven years ago which is great news for consumers. Each year is unique in the travel industry and 2014 was no exception, bringing its own opportunities and challenges. Global events, such as the Winter Olympic Games and World Cup, predictably attracted travellers to new destinations. Yet unforeseen tragedies, including the Ebola outbreak, the missing Malaysian Airlines flight MH370 and the loss of MH17 left their own mark.”

Of the six regions in the HPI, the Index rose in four, was flat in one and fell in another. With a strong economy and rising dollar, North America led the way with a rise of five per cent, two percentage points better than its 2013 result.

Canadian hotel price overview

Canadians continued to invest in domestic travel with an increase in prices paid recorded across the country, with the exception of the Yukon. Canadians also saved an average of $9 when travelling within Canada at $152, compared to the $161 a night they paid internationally. Yet this was still far less than what U.S. travellers paid overseas at $191 a night.

Global hotel price overview

Two regions reported four per cent Index growth. The Caribbean achieved a new record, rising to 137, the highest yearly regional Index figure ever reached. This was fuelled by a stronger US Dollar as the Caribbean remained a favourite for U.S. travellers. Europe and the Middle East also showed its fastest rate of growth in seven years, as many countries reported record visitor numbers.

Latin America showed a two per cent Index rise. Brazil exceeded expectations when it came to its hospitality industry during the 2014 World Cup and the event was a unique opportunity for the country to showcase some of its top class accommodation and services.

The Pacific showed no growth in its Index in 2014, but the continued weakness in the Australian dollar should mean that the region will attract more visitors in 2015.

For Asia, the Index decreased two per cent. Over the years, the HPI has shown that Asia has long offered the best value destinations in the world and continues to do so.

Svanstrom continued: “More than 1.1 billion travellers ventured abroad in 2014, up nearly five per cent over the previous year, with the size of the global domestic travel market estimated to be four to five times this total. Tourism is a fiercely competitive and resilient industry with countries vying to attract valuable visiting travellers by improving infrastructure, expanding hospitality and entertainment options and relaxing visa requirements. Travel opens up both world and minds – so go explore.”

Average percentage price rises in actual prices paid for hotel rooms in 2014

Region % change Index
North America/Canada 5% 116
Caribbean 4% 137
Europe & the Middle East 4% 108
Latin America 2% 131
Pacific 0% 123
Asia -2% 104
Global 3% 113

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